3 reasons for The Rise of DRC Radial Tire

3 reasons for The Rise of DRC Radial Tire

DRC RADIAL TIRE IS A TOP SALE AT VIETNAM DRC TIRE – DANANG RUBBER JOINT STOCK COMPANY

DRC Radial Tire Plan 2020 and Vision to 2030

DRC Radial Tire has according to the Automobile Industry Development Plan to 2020, with a vision to 2030, the automotive industry is oriented to become an important industry in Vietnam. Specifically, by 2020, strive to meet 30-40% of the demand for components and spare parts of domestic production and assembly of cars and in the period of 2026-2030, ensure over 50% supply.

This opens up great opportunities for domestic tire manufacturers as suppliers of ancillary equipment and components.

DRC Radial Tire – Take advantage of the home market

In monent scene, the growth rate in value of the Vietnam Tire market is forecasted to reach about 8% / year in the period of 2018 – 2020, 2 times higher than the world average, and at the same time also higher than the average of 6% for the developing market group.

Domestic tire companies ( Example: DRC Tire , KingTire Vietnam , CSM Tire, … ) have a diversified product portfolio and keep their sales strength in the domestic market, especially strong in commercial vehicle tires such as trucks and passenger cars.

In 2019, Da Nang Rubber Joint Stock Company (DRC Tire) sold nearly 1.94 million car tires, tractors of all kinds, more than 2.78 million motorcycle tires and more than 5.15 million motorcycle tubes.

Although these figures decreased compared to the same period in 2018, this is still considered as a positive result when input raw material prices continue to increase and domestic enterprises face fierce competition from FDI block has great financial and technical potential.

According to domestic automobile manufacturers and assemblers, the reason for DRC domestic tires is trusted and chosen not only because of its heavy load capacity, good wear resistance, long life and thoughtful warranty. But these are also products that have passed many studies and tests to ensure they are suitable for all types of road surfaces as well as weather characteristics in Vietnam.

DRC light truck tires are available in a variety of specifications, suitable for light trucks and dump trucks under 5 tons.

DRC Heavy truck tires have many specifications, suitable for cargo trucks, dump trucks of 5 tons or more, buses and passenger cars.

Special tires have many specifications for farming tractors and tractors, especially, DRC tire is the first enterprise in Vietnam to produce heavy duty auto tires for special vehicles and machines for tunnel mining. mines, container cranes at Harbor, leveling trucks, bulldozers … with different sizes ranging from 24 inch to 51 inch in size.

DRC Radial Tire is pioneering in Radialization of Vietnam Tire industry

In common with the global radialization trend, the rate of using DRC Radial tire for cars in Vietnam is currently estimated at 50-60% and is forecasted to be a market with plenty of room for growth when the quality of the mechanical system Traffic infrastructure is clearly improved day by day.

The factory of DRC Radial Tire consists of 3 zones: finished product warehouse, blending house and tire manufacturer, invested with world’s leading modern equipment such as Japan’s closed smelting system, American spindle release machine, and coating rolling machine. of Italy, Dutch tire bar machines, …

“DRC ‘s all-steel auto tires meet stringent specifications according to international standards. Danang Rubber jsc has registered international quality standards such as: D.O.T safety standards of the US, Japanese industrial quality standards JIS, European EMARK quality standards !”

The representative of DRC affirmed.

This project with a total investment of 3,992 billion VND has demonstrated the correct vision and appropriate strategic direction of DRC tire when it operates up to 111% of its design capacity in 2018. After 4 years of going into production, Radial tires contributed 35% of total revenue with the growth rate of 45% in 2018.

In addition, since 2016, DRC Tire has joined hands with Black Donuts Engineering Inc (Finland) – the world’s leading company specializing in technology transfer consulting, tire production to receive and transfer new technologies. , the world’s breakthrough in Radial tire production. After 1.5 years of cooperation, by 2018, DRC has completed testing new products.

Improvements in manufacturing technology from a Finnish partner help the quality of DRC Radial tires have a new breakthrough, creating a line of high quality Radial tires to meet the increasing demand of the industry. processing and manufacturing at home and abroad.

More importantly, this improvement has helped DRC strengthen its pricing capabilities, while improving margins significantly and allowing DRC to compete in the higher selling price segment, enhancing its Vietnam Tire brand. Male to a new level in the field of tire production and trading in the world.

In 2019, DRC Tire motivation comes from putting the Phase 2 Radial Tire factories into operation, doubling the current capacity to 1,200,000 tires / year, 40% reduction in depreciation / product cost per year when running at full capacity.

Capacity by 2020, meeting the great demand and the market as well as contributing to the strong growth of the domestic industry and building a strong foothold for Vietnamese tires and tubes in their own yard.

In terms of volume, DRC Tire is expected to consume 5 million bicycle tires and 4.5 million bicycle tubes. It is estimated that motorcycle tubes consumed 6 million units while motorcycle tires were about 3 million units. Notably, the total consumption of automobile tires and tubes is estimated at 1.2 million units, of which there are about 680,000 Bias tires and 850,000 radial tires …

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